Sylvania Platinum Limited (“Sylvania”, “the Company” or “the Group”) aim (slp) Fourth Quarter Report to 30 June 2015

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  Sylvania Dump Operations (“SDO”) PGM ounce production increased 5% to 13,468 ounces for the quarter (Q3 FY2015: 12,778 ounces).
  
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  Full year production at record level for Sylvania of 57,587 ounces, an increase of 7% on the previous year’s production (FY2014: 53,808 ounces), exceeding the revised upward guidance of between 55,000 and 57,000 ounces for the financial year.
  
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  Group cash balance of $8.4 million at 30 June 2015 (5% decrease on Q3 FY2015 of $8.8 million) and 58% increase year-on-year (FY2014: $5.3 million) in spite of poor metal pricing environment.
  
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  No Lost-Time Injuries (“LTI’s”) during the quarter, with Tweefontein and Mooinooi reaching three years and 500 days LTI free respectively during the quarter, while Steelpoort remains LTI free for more than seven years.
  

Commenting on the quarter, Sylvania Platinum CEO Terry McConnachie said:

There were no Lost-Time Injuries (“LTI’s”) during the quarter. The Steelpoort operation remains LTI-free for more than seven years, while the Tweefontein and Mooinooi operations achieved the significant milestones of three years and 500 days LTI-free during the quarter respectively.

The combined production for all the SDO was 13,468 PGM ounces in the final quarter of the 2015 financial year, a 5% improvement on the previous quarter (Q3: 12,778 ounces), contributing to the exceeding of the revised annual production target of 57,000 ounces (FY2015: 57,587 ounces). The SDO cash cost of production of $638/oz (R7,114/oz) remained stable in both dollar and rand terms compared to the previous quarter (Q3 FY2015: $641/oz (R7,518/oz)) and up 1% from $634/oz (R6,674/oz) in the same period during the previous year.

While the combined plant feed head grade was slightly lower than the previous quarter, plant feed tons, PGM feed tons and recovery efficiencies improved for the operations, contributing to the higher PGM ounce production for the quarter.

1. 
   The gross basket price reported is the total estimated price for deliveries made in the quarter and does not include any penalties or smelting costs. The actual net basket price received is only determined in the invoicing month which is three months after the delivery month, prior quarter adjusted for actual prices received if necessary.
   
2. 
   The functional currency for SDO is SA Rand and the exchange rate shown is the average over the period indicated.
   
3. 
   Cash costs include plant operating costs such as mining, processing, administration, royalties and production taxes, but are exclusive of depreciation, amortisation, reclamation, capital, project development and exploration costs.
   

2. 
   EXPLORATION AND OPENCAST MINING PROJECTS
   

The Company announced last quarter that they await a final decision by the Limpopo Department of Economic Development, Environment and Tourism (“LEDET”) on the Environmental Impact Assessment (“EIA”) and that this is expected before 31 July 2015. As previously stated this timeline was dependent on the duration of the independent peer review instructed by the Department. Subsequent to this update, Sylvania received a request for clarification on certain aspects of the EIA, as well as an instruction to provide for biodiversity and wetland offset strategies. These strategies would form the basis of implementing remediation towards a zero net impact should planned mitigation during the mine’s operation prove to be insufficient.

Exploration has continued over the northern portions of Grasvally in order to declare a Joint Ore Reserves Committee (“JORC”) compliant resource which will be required by the Company in order to exercise a mining right over the resource. Exploration has been in the form of an extensive drilling programme targeting both the upper and the lower chromitite layers. The programme was separated into two deliverables: a shallow indicated resource and a deeper inferred resource that is SAMREC (“South African Mineral Resources Committee”) compliant. The drilling was completed at the end of April 2015, totalling 2,539m. Diligent logging of the samples is currently underway, and will be completed at the end of July 2015. Using all acquired data and the previously published southern resource model, a complete resource model will be developed over the entire property using 3D modelling techniques. This will describe both the shallow resource which will be minable by opencast methods, as well as the deeper, underground resource which will be classified in SAMREC as indicated and inferred respectively.

The Company continues to await a decision on its request to the Department of Mineral Resources (“DMR”) to reduce the amount of financial provision for rehabilitation. It is anticipated that this will be received shortly, whereafter the Section 11 Application in terms of the Mineral and Petroleum Resources Development Act (“MPRDA”) to transfer the right to mine iron ore, vanadium and heavy minerals to Ironveld Plc will follow.